You may already be aware of the personal savings allowance. This offers an allowance of £1,000 of interest income for basic rate taxpayers, or £500 for higher rate taxpayers. (The allowance is not available to additional rate taxpayers.) Additionally, if you are a low-income earner, you may be eligible to …
Author: Erin He
Rules for two ancillary reliefs on Capital Gains Tax (CGT) relating to rented residential properties are changing. Changes to final period of property ownership, and lettings relief will apply to property disposed of from 6 April 2020 onwards. If you are planning to sell a property within the next couple …
Income tax Personal allowance will increase to £12,500 (current level £11,850) from April 2019, and higher rate threshold will increase to £50,000 (current level £46,350), and they will remain at this level for the 2020-21 tax year. Pension and savings tax Pension lifetime allowance will increase to £1,055,00 from …
As an entrepreneur, a lot of you will reach the point where you need capital to support the growth of your business. You will then work on your business plan, create a pitch deck, and set off to woo potential investors. But here is one more critical task you may …
There are encouraging messages in the Budget for technology and innovation companies. Specific points are: R&D Expenditure Credit Scheme (RDEC) taxable credit will increase to 12% from 11%. Promise to double the EIS investment limit (currently £1m) for investors on knowledge incentive companies. £2.3bn more government investment on R&D. This …
The government introduced a scheme (SME scheme) to incentivise scientific and technological innovation. If your company conducts R&D activities and your company is subject to Corporation Tax, the R&D tax relief can either reduce your tax bill or give you tax credit in cash. This article provides an overview of …
The new tax rules taking effect in 2017/18 have been much discussed. But if you are a landlord and let out one or more properties, you will still be wondering what your new tax bill will be like after April next year, and should you be changing your tax strategy? …
If you run a limited company and have registered as an employer, you will have been sent letters about employer pension auto-enrolment at certain staging date by pension regulators. What actions do you need to take? It depends on your company’s structure: if you hire employees, even if they are …
HOW THE INTRODUCTION OF THE NEW 16.5% VAT FLAT RATE COULD AFFECT CONTRACTORS FROM APRIL 2017? Effective from 1 April 2017, The VAT flat rate scheme (FRS) for businesses with limited cost will increase to 16.5% from their current rate, based on defined criteria for a ‘limited cost trader.’ So …
The change that will affect contractors and other limited company owners is the reduction of dividend allowance from £5,000 to £2,000. So that means an extra £3,000 will be taxed at either: 32.5% rate, this equals to £975 more tax you have to pay. Most contractors’ income level will fall …